How much taxes do you pay for Daytrading?

Discussion in 'Taxes and Accounting' started by GotherL, Jun 12, 2018.

  1. GotherL

    GotherL

    I heard a trader on youtube comment about paying 50% income taxes. Is it that high everywhere? (I live in Canada.)
    How do daytraders even make a living if they have to pay such a high tax rate?
     
  2. Sig

    Sig

    Worry about making a profit first. In most jurisdictions you've got to make it over that hurdle before you pay any taxes, and most don't. In the U.S. you're taxed at ordinary income rates, less if you trade futures. Much less than 50%, same as any other earned income so no different than having a regular salaried job from a tax perspective.
     
    ET180 and CSEtrader like this.
  3. Esha.J

    Esha.J

    Being Profitable is also chance of your work. Different Countries are having different rules for trading.
     
  4. GotherL

    GotherL

    I just didn't understand how this guy got 50% income tax who was a reputable youtuber/trader so I doubt he was lying. The tax bracket for the US only goes as high as 39.6% for making over 418k. He prolly was making near or more than this amount.

    Edit: Now that I think of it perhaps he wasn't living in the U.S and someplace where the income tax went as high as 50%.
     
  5. kevinkdog

    kevinkdog Sponsor

    He could have been including state and local income tax in that figure.
     
    MoreLeverage, truetype and ET180 like this.
  6. ET180

    ET180

    State taxes. In Oregon, the 9% state bracket kicks in at just $8,500. So if he's 39.6% federal + 9.9% state (for Oregon, California, New York, or other high tax state), then the Obama Net Investment tax of 3.8% that's already over 50% before even considering property taxes, social security, gas taxes or any other sales taxes if applicable. Of course, a trader doesn't have to live in a high tax state so that's one tax that can be saved.
     
    MoreLeverage, Eldredge and kevinkdog like this.
  7. RDK91

    RDK91

    It really depends on where you live and what you get for the taxes you are paying.

    I live in Belgium and i pay high taxes (somewhere between 40%-50%), maybe a little bit high, on the other hand we have excellent healthcare, education is almost free, we have good unemployment benefits, nice pension, decent public transport (and cheaper then in our neighbor countries), child support, ...
     
    userque and Simples like this.
  8. Turveyd

    Turveyd

    In the UK use a SpreadBetting account and therefore ZERO Tax :) Classed as gambling and gambling isn't taxable :)
     
  9. zdreg

    zdreg

    you did not mention gains on stock transactions have very favorable treatment in Belgium.
     
  10. In Denmark the marginal income tax for trading as a business is 56%.
     
    #10     Jun 13, 2018